On September 3, 2026, The Woodlands Township Board of Directors lowered the total property tax rate from $0.1714 to $0.1694 per $100 of taxable value. The same page that reports the cut opens with a bold statutory banner. It says the Township "adopted a tax rate that will raise more taxes for maintenance and operations than last year's tax rate" and that the rate "will effectively be raised by 1.79 percent."
Both statements are accurate. A buyer comparing The Woodlands with other north Houston suburbs will see this notice while checking taxes, and the gap between the two statements explains a lot about how the Township pays its bills. Homeowners are not its largest source of money. Shoppers are.
The rate fell while the revenue rose
Texas measures a tax rate against what it collects, not against last year's number. The Township's Notice About 2026 Tax Rates defines the no-new-revenue rate as the rate that "would impose the same amount of taxes as last year if you compare properties taxed in both years."
| 2026 benchmark | Rate per $100 |
|---|---|
| 2025 adopted rate | $0.1714 |
| 2026 no-new-revenue rate | $0.1654 |
| 2026 adopted rate | $0.1694 |
| 2026 voter-approval rate | $0.1804 |
The adopted rate is below last year's rate and above the no-new-revenue rate. That gap comes from property values. The Township's preliminary FY2027 budget cites figures from the Montgomery and Harris County appraisal districts showing total taxable value up from $30.3 billion in tax year 2025 to $31.4 billion in tax year 2026, an increase of 3.6%. The Montgomery County portion grew 3.3% to $26.2 billion. The smaller Harris County portion grew 6.1% to $5.2 billion.
When the tax base grows that much, a rate can fall and still bring in more money. The adopted budget expects property tax revenue of $53.3 million in 2027, up $1.29 million or 2.5% from the 2026 budget. The maintenance-and-operations rate of $0.1594 passed 6 to 1, with Director Shelley Sekula-Gibbs voting no. The $0.0100 debt service rate passed unanimously.
Sales tax brings in more than property tax
Property tax covers a smaller share of the Township's budget than sales tax does. Here are the main tax revenue lines in the FY2027 adopted budget summary:
| Revenue source, 2027 adopted budget | Amount | Change vs. 2026 budget |
|---|---|---|
| Sales and use tax | $85,281,415 | +4.5% |
| Property tax | $53,266,014 | +2.5% |
| Hotel occupancy tax | $8,336,743 | flat |
| Supplemental hotel tax | $2,381,926 | flat |
| Event admissions tax | $2,000,000 | flat |
| Mixed beverage tax | $1,485,000 | flat |
Sales tax makes up 46% of budgeted revenue and brings in about $32 million more than property tax. Anyone who buys taxable goods inside the Township pays it, whether they own a home there or are just visiting for a day. Hotel guests, concertgoers and restaurant customers fill most of the remaining tax lines. Together they cover much of a budget that pays for more than 220 miles of pathways, a full fire department and contracted law enforcement.
For a buyer, this is why the Township's line on a tax bill stays small. The property tax rate is low because other revenue covers so much of the budget.
The Township is about a tenth of the bill
The Township rate is one part of a stack of rates. The Montgomery County Tax Assessor-Collector's 2026 rate and exemption list shows the adopted 2026 rates for the units that commonly apply to a home in the Montgomery County part of The Woodlands:
- Conroe ISD: $0.9471, approved August 18, 2026, down from $0.9496, as Community Impact reported
- Montgomery County: $0.3860
- The Woodlands Township: $0.1694
- Lone Star College System: $0.1058, approved October 1, 2026, according to Lone Star College
- Montgomery County MUD 6, as one example district: about $0.0649, down from about $0.0671 in 2025
- Montgomery County Hospital District: $0.0458, down from $0.0473
For a home in that sample stack, the combined rate is about $1.72 per $100, and the Township's share is about 9.9%. Conroe ISD makes up more than half. On a home with $500,000 of taxable value before exemptions, the Township portion comes to about $847 a year. Municipal utility district rates differ from one part of The Woodlands to another, so the total changes by address even when every other line is the same.
Exemptions also differ by taxing unit. The county rate list shows a 3% homestead exemption and a $50,000 over-65 exemption for the Township, a $140,000 homestead exemption for Conroe ISD and a 20% homestead exemption for Montgomery County. This is general information, not tax or legal advice. Confirm the rates, exemptions and eligibility for a specific property with the tax office or a tax professional.
Where the 2027 money goes
Total spending in the adopted budget falls 19.3% to $191.1 million, mostly because the bus and trolley replacements, along with major fire-apparatus and park-renovation projects, were budgeted in 2026 rather than 2027. Capital outlay drops 66.4%. Operating costs still rise 4.8%, and law enforcement has the largest increase: $4.4 million, or 20.5%, bringing that line to $25.8 million.
One visible change is already approved. On September 17, the board voted to move the Township's mounted patrol from a civilian courtesy patrol to a commissioned unit of the Montgomery County Sheriff's Office. The new unit has one sergeant, six deputies and seven horses. It costs about $1.37 million a year to operate, plus $954,000 up front for horses, vehicles, trailers and facilities. Staff estimate it will save about $133,000 a year compared with keeping the current model at its proposed new rate. The current contract expires December 31, 2026. At the August 17 budget workshop, staff said the existing contract with Alpha and Omega had been carried in the Customer Engagement budget. That department's budget falls 35.2% in 2027.
The fire department, the largest single operating line at $37.6 million, grows 3.5%. Park and pathway operations hold steady at about $10.6 million. The budget plans to spend $6.8 million more than it takes in, which draws the ending fund balance down to $91.3 million.
Relying on sales tax cuts both ways
So far this year, the revenue that holds the rate down is coming in ahead of plan. At the October 22 board meeting, Chief Financial Officer Kellen Shaw reported sales tax collections of $70.9 million for the nine months ending September 30, 2026. That is 7.6% more than the same period in 2025 and $2.4 million above budget. Growth came from retail, oil and gas, arts and entertainment, and hospitality. Hotel occupancy tax came in slightly below budget at $7.9 million.
Those sectors move with the regional economy, and oil and gas is among them. A homeowner's Township rate partly depends on how much people spend at the Township's shops, restaurants and hotels. If that spending slows, the property tax rate is the obvious lever left.
The board has also preferred lowering the rate to adding exemptions. Community Impact reported that at a May 15 strategic planning session, President and CEO Monique Sharp said the Township has historically focused on reducing the rate rather than increasing exemptions. At the August 17 workshop, staff estimated that the existing 3% homestead and $50,000 over-65 and disabled exemptions reduce taxable value by about $1.1 billion and Township revenue by about $1.9 million. Board members asked whether hotel tax reserves could help lower the rate. Staff answered that reserve balances are one-time money, while hotel tax revenue is recurring and supports future economic development borrowing.
A rate cut helps every property owner. A larger homestead exemption helps owner-occupants more. The board's approach so far shows which one it has chosen.
Short FAQ
Will my Township bill go down in 2026? That depends on how your property's taxable value changed. The adopted rate is lower, but the notice's 1.79% "effective" increase reflects rising values across the tax base.
Where can I see every rate that applies to a specific address? The Montgomery County Tax Office rate history page lists adopted rates by taxing unit and year, including municipal utility districts such as Montgomery County MUD 6.
Is anything else in planning? On October 22, the board approved a $231,600 feasibility study for an indoor field house near Bear Branch Park, paid from the Parks Needs Assessment Reserve. The approval covers planning only and does not authorize construction.
If you are comparing The Woodlands with Spring, Magnolia or Montgomery, comparing headline rates is not enough. Compare the full tax stack for each address you are considering. The Jamie Bechtold Group can line up the taxing units, MUD rates and exemptions for the homes on your shortlist, so the monthly cost you plan for is the one that shows up on your bill. Schedule Your Strategy Call.
